Bandpass Bulls Momentum Cycle
Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4
Thesis
Market price action is composed of cycles overlaid on trends; by using a Bandpass Filter to isolate the 10-20 bar frequency, we can identify when a cyclical expansion is beginning. This edge exists because markets often exhibit harmonic behavior after periods of consolidation. By only entering when this cycle aligns with Elder's Bulls Power (the ability of buyers to push price above the mean), we filter out 'weak' momentum. The use of Daily High/Low for risk management ensures that the trade is grounded in the previous day's institutional supply and demand zones.
Components
- Bandpass Filter (BPF) (regime) — Used as a regime filter to ensure the trade is taken during a specific cyclical expansion phase, filtering out high-frequency noise and low-frequency trends that are likely exhausted.
- Bulls Power (Elder-ray) (direction) — Provides the directional bias. Only long trades are allowed when the Bulls Power is positive, indicating that the high of the current bar is higher than the EMA (buyers are in control).
- CCI / Connectable [Azullian] (entry) — Serves as the precise entry trigger when momentum aligns with the BPF cycle and Bulls Power direction.
- Chandelier Exit (Heiken Ashi) (exit) — Provides a volatility-adjusted trailing exit that accounts for Heiken Ashi smoothing, intended to capture the meat of a cyclical swing.
- Daily High Low (risk) — Defines the structural risk boundaries. The previous day's high/low acts as a hard invalidation point for the current day's cyclical thesis.
Known failure conditions
- Market enters a 'dead zone' where volatility drops so low that the BPF cannot isolate a dominant frequency.
- Price action becomes parabolic, moving faster than the 2nd order IIR filter can adjust, leading to significant phase lag.
- Expansion of the Daily High/Low range beyond a standard deviation of the 20-day ATR, making the risk-reward ratio mathematically untenable.
Explore the full interactive blueprint with parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine (free download).